Using a solution based on blockchain technology, South African startup Momint says its recently launched Suncash initiative aims to ease the country’s power generation challenges It states that the company is Investors can purchase non-fusible tokens (NFTs) linked to solar cells for about $9, which will reportedly be leased to schools, hospitals, and other facilities.
Momint is piloting the solution at local schools.
South African startup Momint recently announced that it has launched a blockchain-powered solution that could alleviate the African country’s energy problems by installing many rooftop solar systems on public institutions such as hospitals and schools, News 24 reports. The startup’s solution has already been piloted at Delmas High School in South Africa’s Mpumalanga province, according to the report.
As described in the
reportinvestors who want to participate in the project can do so by acquiring a non-fusible token (NFT) linked to the solar cells, which will be sold for a minimum price of just under $9. The solar cells are then leased to institutions that agree to purchase the power generated through so-called standard power purchase agreements.
Commenting on his company’s solution to South Africa’s power generation crisis, Ahren Posthumus, CEO of Momint, said.
We are a technology company looking at the next 15 years, and what we realized is that you cannot build a technology company in a country without electricity.
Posthumus also insisted that the company does not expect to profit from the project, which he described as “not financially sustainable.” However, the CEO claimed that he chose the project because he wanted to help South Africa overcome its power generation challenges.
Blockchain Solution Reduces Momint’s Risk
As for why the startup chose blockchain, Posthumus claimed that this would not only make the project more transparent, but also reduce Momint’s risk
“We take the legal contracts that represent the ownership of the individual cells and put those legal contracts in a file on the blockchain, commonly called a ‘token’. This is called a smart contract. That smart contract says, ‘The person who owns this token has rights to the underlying asset,’ and they have rights to the revenue that the underlying asset generates,” the CEO reportedly said.
Blockchain-based solutions are considered one of the most appropriate, but nonetheless come with their own drawbacks; according to Posthumus, one such drawback is the risk of default by public institutions.
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